More Than 70% of Hispanic Millennials Providing Financial Support to Family Members – With Many Increasing Their Support During the Pandemic
The survey also revealed that nearly half of Hispanic millennials (45%) contributed less than
“Many Hispanic millennials are providing financial support to family and facing disproportionate impacts from drops in savings and other financial hardships, underscoring the need for guidance as they take proactive steps to rebuild financial security,” said Christine Channels, Head of Community Banking and Client Protection at
Other key findings from this research include:
Gaps in savings and emergency funding, and job instability pose serious challenges
- Prior to the pandemic, 40% of Hispanic millennials did not have an emergency fund (vs. 34% of non-Hispanic millennials), and 27% didn’t have enough saved to weather the impacts of the pandemic (vs. 17%).
- Seventy-two percent say the pandemic impacted their ability to save – more so than non-Hispanic millennials (59%).
- Today, 38% are still finding it difficult to save (vs. 29% of non-Hispanic millennials), one-quarter (24%) are living paycheck-to-paycheck, and 13% are having trouble paying rent/mortgage or other essential expenses.
- As job insecurity remains a pressing challenge, the survey found that one-in-five (19%) Hispanic millennials are still unemployed.
- Twenty-six percent say reduced income is a top barrier to achieving their financial goals, followed by being unable to save (25%) and job instability (19%).
- Compounding these challenges, 51% of Hispanic millennials do not have a financial role model or anyone to turn to for financial advice – notably more than non-Hispanic millennials (39%).
Family is the cornerstone of Hispanic millennials’ financial lives
- Compared to non-Hispanic millennials, Hispanic millennials are four times more likely to be supporting their or their spouse’s parents (16% vs. 4%) as well as family abroad (17% vs. 4%).
- Seventeen percent have provided financial support to family since they were old enough to have a job – two times more than non-Hispanic millennials (8%).
- Hispanic millennials are today two times more likely to feel a greater sense of financial responsibility for loved ones (18% vs. 9% of non-Hispanic millennials).
“Family has long played a powerful role in Hispanic millennials’ financial priorities and decisions, and the pandemic has only strengthened their commitment to the financial well-being of loved ones,” said
Hispanic millennial women disproportionately impacted by caregiving responsibilities
- More than half (56%) of Hispanic millennial women hold some type of caregiving responsibility, compared to 34% of Hispanic millennial men.
- Among those women with existing caregiving responsibilities, 58% increased their caregiving role due to the pandemic (vs. 37% of Hispanic millennial men).
- Compared to Hispanic millennial men, Hispanic millennial women are significantly more likely to be balancing both work and childcare (35% vs. 15%) and to have needed to leave the workforce or reduce work hours to care for children (19% vs. 9%)
- Hispanic millennial women who took on increased caregiving responsibilities were also more likely than Hispanic millennial men to report a financial challenge, including a decrease in earnings (30% vs. 20%) and difficulty managing finances/paying bills (30% vs. 23%).
Despite challenges, Hispanic millennials are future-focused and taking action toward their financial goals
- Seventy-one percent say the pandemic has influenced their financial values, or how they plan to spend and manage finances – more than non-Hispanic millennials (58%).
- Nearly one-third (32%) are now prioritizing saving and budgeting (vs. 28% of non-Hispanic millennials), and 27% are more focused on their individual financial goals and self-improvement (vs. 22%).
- Nearly half of Hispanic millennials (48%) plan to start an emergency fund following the pandemic (vs. 36% of non-Hispanic millennials) – and 21% have already started saving (vs. 16%).
As Hispanic millennials prioritize better money habits, they continue to seek advice and guidance as they look to take control of their finances and plan their financial futures. Bank of America’s Better Money Habits platform connects people at all life stages to relevant tools and resources that help build know-how about topics such as budgeting and saving, homeownership, reducing debt and retirement so people can learn and take action. To support Hispanic individuals and communities in reaching their financial goals, Better Money Habits also offers its full suite of easy-to-understand tools and resources in Spanish.
The study was conducted
Better Money Habits®